Question
banff limited( a canadian company) imports die cast parts from its taiwanese subsidiary that are used in the production of children toys. per unit part
banff limited( a canadian company) imports die cast parts from its taiwanese subsidiary that are used in the production of children toys. per unit part 169 costs the taiwanese subsidized c $10 to produce and see c $2 to ship to banff limited. banff uses part 169 to produce a toy airplane that it sells to local toy stores for c$52.00 per unit. the following tax rate apply. taiwanese income tax 17% canadian income tax 26.5% canadian import duty 20% of invoice price
A) Determine the total amount of income taxes and import duties paid to the Canadian and Taiwanese government if part 169 is sold to Banff Limited at a price of C$20.00 per unit. B) Determine the total amount of income taxes paid to the Canadian and Taiwanese if part 169 is sold to Banff Limited at a price of C$30.00 per unit. C) Explain why the results obtained in part (a) and (b) differ
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